Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 31 Aug 2026
PAGS· Technology
PagSeguro Digital
PagSeguro's valuation is compelling with a P/E of 5.9, but high leverage raises concerns about financial stability.
Buffett fit
Partial fit
Owner
58
Durability
100
Management
39
Price
100
Score updated 23 Oct 2026 · analysis from 31 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning PagSeguro would mean focusing on its ability to maintain and grow its user base within the Brazilian market.
The full reasoning comes with a free account.
PagSeguro has shown consistent profitability over the last five years, with a 5-year EPS CAGR of 18.71%.
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The company has been returning capital to shareholders, evidenced by a 4.68% yield over five years.
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With an earnings yield of 17.06% and an yield of 11.99%, the stock appears undervalued.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1 of 5.9 indicates a low valuation relative to earnings.
- 2Earnings yield of 17.06% suggests strong profitability.
- 3 of 37.92% is top-quintile within the sector.
- 45-year EPS CAGR of 18.71% shows robust growth.
Concerns
8- 1Net debt/EBITDA of 4.73 indicates high .
- 2Interest coverage of 1.5 is below safe thresholds.
- 3Debt/Equity ratio of 3.19 reflects aggressive .
- 4 of 51.14% is below sector top-quintile.
Price history
$11.28-68.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
PagSeguro Digital Ltd. offers a financial technology ecosystem primarily in Brazil, catering to small and medium-sized enterprises. The company's revenue is driven by its digital ecosystem, PagBank, which integrates various financial services. With a of 51.14%, the business model relies on processing payments and offering banking services. The unit economics are strong, given the 37.92% , indicating efficient operations.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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